charts and trends, page-13

hi mosteph.

if you look at the top of the macd (where i have highlighted the bearish divergence) resistance line you can see the first two points where the line started. using this starting point gives me a end point where the resistance line is broken.

i am a daily based trader, i only use the weekly and monthly for trend direction only. i do not trade the monthly time frame. a good daily based trader could have made good profits going long using the macd resistance line break on the daily chart and getting out on the break in the macd support line on the daily chart at the points you have highlighted on the monthly chart.

the macd is a lagging momentum indicator, the macd thrist and resistance line break tells me that the selling momentum could be slowing, the important point to me as a daily based trader is that the thirst is on a monthly chart.

i am trading deep in the money june call options. if the sp trends up more i will be buying more june options and then buying out of the money puts for protection. if my target is hit i would be looking at a 70-80% profit with little risk. i could also look at selling naked short dated out of the money calls options on 4 hours sell signals.


have a good one.

582